These were the days!

onomatopoeia99

boingy said:

slinger2 said:

..I remember my first mortgage (1980): 15%. Borrowed 2.25 times my salary, which meant that the mortgage interest was a third of my gross pay. Mind you, we did get tax relief on mortgage interest payments in those days. Basic rate of income tax 30%.

We were not far into our first mortgage when Black Wednesday hit in 1992. Interest rates went from 10% to 12% to 15% in one day. 

You forgot the final step that day which was back down to 12% after Norman Lamont took us our of the ERM, then the following day it was back down to 10%. 

UKX69

Can’t remember cost of my first house but sold it in 1980 for 12k. My present house cost 17k (1984), owners wanted 21 but knocked them down - needed a bit of work. Ended up with 12k mortgage. 👍

artyboy

1992 was a good year for me... too young to have got onto the mortgage ladder, but old enough to sign up for a 25 year fixed rate account at 12% interest, tax free... pity there was a cap on how much I could deposit as it was a Friendly Society product, but I doubt I'll see that again in my lifetime...

mebu60

DasTechniker said:

Can’t remember cost of my first house but sold it in 1980 for 12k. My present house cost 17k (1984), owners wanted 21 but knocked them down - needed a bit of work. Ended up with 12k mortgage. 👍

My first house around the same time was asking £13.5k but I could only get a mortgage for £13.2k. Had to do a lot of pleading with the seller to get price down. 100% mortgage, needed what little cash I had to get stuff, second-hand or gifted. 

UKX69

mebu60 said:

DasTechniker said:

Can’t remember cost of my first house but sold it in 1980 for 12k. My present house cost 17k (1984), owners wanted 21 but knocked them down - needed a bit of work. Ended up with 12k mortgage. 👍

My first house around the same time was asking £13.5k but I could only get a mortgage for £13.2k. Had to do a lot of pleading with the seller to get price down. 100% mortgage, needed what little cash I had to get stuff, second-hand or gifted. 

I was fortunate to be in a well paid job with a nationally recognised company when I bought my second house. Walked into my building society (Abbey National), made an application for a mortgage and had a letter next morning to say it had been approved. That wouldn’t happen today!

Ocelot

onomatopoeia99 said:

boingy said:

slinger2 said:

..I remember my first mortgage (1980): 15%. Borrowed 2.25 times my salary, which meant that the mortgage interest was a third of my gross pay. Mind you, we did get tax relief on mortgage interest payments in those days. Basic rate of income tax 30%.

We were not far into our first mortgage when Black Wednesday hit in 1992. Interest rates went from 10% to 12% to 15% in one day. 

You forgot the final step that day which was back down to 12% after Norman Lamont took us our of the ERM, then the following day it was back down to 10%. 

IIRC it went down to 6% the following day.

Ocelot

Think I posted this before: 16.67% gross interest rate in 1990.